Indian stocks posted a significant rebound on Monday following five consecutive sessions of decline. Both benchmark indexes experienced recoveries after plummeting nearly 5% over the past week.
The renewed market sentiment was bolstered by positive signals from global markets, as a reassuring U.S. inflation report revived investor optimism regarding potential Federal Reserve policy easing in 2025.
Contributing to the improved performance, the dollar retracted from its two-year peak reached last week, and Treasury yields decreased, reigniting interest in emerging market assets, including those in India.
Furthermore, investor confidence was uplifted by the U.S. Congress's successful passage of a spending bill on Saturday, which avoided the possibility of a government shutdown at the year's end.
Despite these positive factors, minor volatility was observed in the afternoon, influenced by political uncertainties in Europe, particularly in Germany and France, along with ongoing concerns about former President Trump's tariff threats.
The S&P/BSE Sensex index concluded the day up by 498.58 points, or 0.64%, finishing at 78,540.17. Meanwhile, the broader NSE Nifty index increased by 165.95 points, or 0.7%, closing at 23,753.45.
Metal stocks led the market gains, with Hindalco and JSW Steel each advancing approximately 2%, following the Directorate General of Trade Remedies' (DGTR) investigation into the steel sector's request for a 25% safeguard duty on imports.
HDFC Bank, Trent, and ITC also experienced growth of around 2%. However, Maruti Suzuki India saw a decline of 0.8%, and Hero MotoCorp fell by 1.5% after Japanese automakers Nissan and Honda revealed they are in discussions to merge, potentially forming the world's third-largest automobile manufacturer based on sales.
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